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ITG FAQ #7 Answer-What are "qualified wages"?

Qualified wages are generally wages subject to the Federal Unemployment Tax Act (FUTA) without regard to the FUTA dollar limit, but not more than $10,000 each year for each employee. The qualified wages also generally include the following amounts paid or incurred by the employer that are normally excludable from the employee's gross income:

  • Amounts received for medical care under accident and health plans;
  • Employer-provided coverage under accident and health plans;
  • Certain amounts excludable under an educational assistance program or that would be excludable but for the expiration of the exclusion;
  • Amounts excludable under a dependent care assistance program.

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Page Last Reviewed or Updated: 17-Oct-2014